Purchasing real estate is an exciting time for most, but there are several steps that are involved for a successful transaction. I have prepared a list of tips below for you to follow so that you can be best prepared. Factor in these steps to help make the process go smoothly.
Hire a Mortgage Agent:
Contacting a mortgage broker is one of the first steps that you will want to take. They can help you with checking your credit score and will pre-approve you for an amount to borrow for a loan. This important step will dictate the price range of homes that will be in your search. In addition, they will give you with a pre-approval letter that you will need to accompany your offer.
An important part of planning to purchase real estate is to save as much as you can. You will need to have funds for your down payment, closing costs and other incidentals during the process. A mortgage broker will give you an estimate of what costs to expect depending on your situation. It is best to avoid making any large purchases or opening up additional lines of credit during this time as that can affect your qualification for a mortgage.
Each area offers its own unique amenities and services so be sure to do your due diligence and investigate which areas are best for you. Consider things like proximity to transportation and your work commute as well as the cost of the homes that are most appropriate for your needs. I can also help guide you and find the right areas to focus on based on my years of experience and area knowledge.
Performing a home inspection is important for gaining a better understanding of what your future new home may need in the way of repairs. Not only do they know exactly what to look for with regard to current conditions, but this information can help with budgeting for future expenses. Should any significant repairs be needed, this can sometimes call for further negotiation with the seller.
After your home inspection has been completed and you are satisfied with it, then the next step is to sign your Purchase and Sale Agreement, commonly called “P & S.” This agreement identifies all terms of your deal including important dates and will be accompanied with your down payment funds. You may have further steps for financial approval with your lender, but this will be the next major step until your walk through followed your actual closing.